Sunday, January 8, 2017

Some nobody on gold's $15 billion unwind

Some Barron's blog or something - gold's $15B unwind.

I would agree that everything's moved too fast too far, and just because a bunch of hedgies spent the last 9 weeks taking new positions doesn't mean they can stay at those prices.

RBC is quoted in the article as saying this:

“The post-Trump-win unwind of gold has continued but appears to be shallowing out as indicated by gold-backed ETPs [exchange-traded products]. As prices have stabilized, the bleed of gold exchange-traded products (ETPs) has shallowed as well. In fact, while total ETP holdings fell by 228 tons since election day, 97% of that fall occurred in the first 45 days, with the rest occurring over the two weeks since. The fall was not simply a price story, as underlying and price driven flows contributed almost equally to the decrease. Overall, this represents more than a $15 billion drawdown in gold-backed ETP AUM – a pretty staggering number for a commodity which had rallied for much of the year.

So make of that what you will.

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